ENEL ACQUIRES FULL MANAGEMENT CONTROL OF ELECTRICA MUNTENIA SUD

Published on jueves, 5 junio 2008

Bucharest, June 5, 2008  Enel S.p.A. (Enel) and the State-owned company Electrica S.A. (Electrica) have finalized yesterday the privatization process of Electrica Muntenia Sud (EMS), signing the final documents for the sale to Enel of a controlling stake of 64.4% in EMS.

The completion of EMS privatization process was reached after fulfilment of all conditions and activities envisaged by the Privatisation Agreement signed on June 11, 2007 between Enel and Electrica.

The total value of the transaction amounts to about 820 million euros. On April 25, 2008, Enel acquired directly from Electrica 50% of EMSs share capital for a consideration of 395 million euros, and subscribed a capital increase in the amount of 425 million euros.

After the share capital increase subscription by Fondul Proprietatea on last May 30, the final shareholding structure of EMS is as follows: Enel 64.4%, Fondul Proprietatea 12%, Electrica 23.6%. Yesterday, pursuant to the Privatisation Agreement, EMSs new Board of Directors was appointed, with 3 members out of 5 nominated by Enel: Matteo Codazzi (as Chairman), Luigi Giliotti and Claudio Zito.

Fulvio Conti, Enel CEO, commented that The completion of Muntenia Sud privatization represents not only a major step forward for our operations in Romania, achieving a twofold increase, but also a key milestone in the liberalization of the Romanian electricity sector. We intend to pursue an ambitious investment plan for Muntenia Sud, amounting to 1 billion euros for the next 15 years, to increase the quality of services and upgrade the electricity network to the benefit of our customers. The successful results achieved by Enel in managing the Banat and Dobrogea distribution companies privatized in 2005, prove that we are able to bring know-how and technology which contribute to the economic development of the country: we look forward to replicate such success with Muntenia. Now, having built a critical mass in electricity distribution and sales, we will focus on becoming a vertically integrated energy player in Romania, pursuing generation projects in renewables, nuclear and clean coal technologies. Our Romanian investments will accrue to our value creation and strategy.

About Electrica Muntenia Sud

Electrica Muntenia Sud is the sole electricity distributor in Bucharest, the residential and industrial areas on the outskirts of Bucharest, Ilfov and Giurgiu counties. Electrica Muntenia Sud is the 5th distribution company privatised by the Romanian State, out of the eight regional electricity distribution companies. The company employs, as of the end of 2007, a total number of about 2,000 people, covering a geographical area of 5,350 sq km.The total number of EMS customers amounts to about 1.1 million with a network spanning approximately 40,100 km.In 2007, EMS has distributed about 5.54 TWh of electricity and registered revenues in excess of 520 million euros.

About Enel in Romania

Currently Enel has a significant presence in Romania, with Enel Energie that supplies electricity across Romania, and Enel Distribu?ie Banat and Enel Distribu?ie Dobrogea that operate the electricity distribution network in those two regions. Further to the completion of the acquisition of Electrica Muntenia Sud, Enel doubles its presence in the Romanian power distribution sector, reaching about 2.5 million customers, 93,000 km of network, and 5,700 employees.

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